Bitcoin Faces Market Uncertainty and ETF Withdrawals
Bitcoin has been experiencing a prolonged period of fear, uncertainty, and doubt (FUD), leading to stagnant trading around $65,000, according to data from crypto intelligence firm Santiment.
On June 20, the cryptocurrency market saw a significant shift as spot Bitcoin ETFs faced a fifth consecutive day of outflows, losing $140 million.
Bitcoin’s price has continued to drop, with no signs of a rebound. The wider crypto market is also struggling, with most coins losing value in the past 24 hours. Santiment notes that the sentiment around Bitcoin remains negative, with traders showing fear or disinterest as prices hover between $65,000 and $66,000.
🫣 The crowd is mainly fearful or disinterested toward Bitcoin as prices range between $65K to $66K. This extended level of FUD is rare, as traders continue to capitulate. BTC trader fatigue, combined with whale accumulation, generally leads to bounces that reward the patient. pic.twitter.com/WMy3lbdjEB
— Santiment (@santimentfeed) June 20, 2024
Over the past week, Bitcoin’s price has fluctuated, hitting highs near $67,294 and lows around $64,180, according to CoinMarketCap.
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The negative sentiment on social media has been prevalent since late May, as measured by Santiment’s Weighted Sentiment Index, which tracks mentions of Bitcoin on X and the ratio of positive to negative comments.
Bitcoin ETFs have also been affected, with a significant outflow of $139.88 million on June 20, marking the fifth day of withdrawals.
In contrast, BlackRock’s IBIT ETF saw an inflow of $1.5 million, highlighting different investor strategies. The upcoming U.S. private-sector PMI data could be crucial; if it suggests a potential Federal Reserve rate cut, it might stop the ongoing outflows. Otherwise, a continued outflow streak is possible.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
